Building a Business for Exit the prequel…

GRAHAM’S BACKGROUND

• 50+ M&A deals

• Former CEO/MD of Faro, FiveTen, Greythorn, Robert Walters, TMP, HW Group, Badenoch & Clark

• Sits on a number of boards including Brightsparks, Coppergate, CXC, cube19, Ebsta, Evolution, Executives in Africa, IMS, JCW, Profiles and Ventura

@grahampa

DAN’S BACKGROUND

• Sold Broadbean to DMGT in 2008

• Founder of cube19, raised c£2m to date

• NXD at Ebsta & previously Chairman at Recruitment Juice, involved in fund-raises for both

• Investor and M&A advisor for several technology businesses

@dan_mcg

WHAT WE AREN’T COVERING

• Most of what we covered last year

WHAT WE’RE COVERING

• Operational/tactical advice to build an outstanding business• Key success factors• Real life examples to improve profitability• How to get a shot at an extra £20k in fees per recruiter by doing less work

LAST YEAR’S TAKEAWAYS

• Getting ready to sell• Choosing the right advisors• Practical tips• Managing the roller-coaster• Avoiding potholes• Have a plan – be realistic not idealistic• Earnouts & succession planning• Warranties, Indemnities and Disclosures• Deal breakers• Prepare your due diligence• What a ‘successful’ exit looks like

What’s at Stake? Fast 50 2009: Where are they now

 

Continued Growth 48%

Successful M&A Event 16%

Distressed M&A Event 4%

Declining Performance 26% Administration 6%

ANALYSIS OF HOW FAST 50 2009 ENTRANTS ARE PERFORMING IN 2013

The Goal of a Scalable & Replicable Model

4 Key Success Factors

 

Be clear on what you are & what you aren’t

Have a model that delivers consistent

recurring profit

Hire good people & keep them

Understand & measure what really drives

your business

• What type of business do you want (and what do you have)? Be realistic not idealistic

• What markets do you specialise in? Be specific

• Do you & the rest of the management team have clearly defined roles and responsibilities? Make the tough decisions now

• If you have partners do you always share decision making? It could be holding you back

• Does your decision making relate to your company strategy & end goal? Are you aligned & will it make…

Be clear on what you are & what you aren’t

• Do you believe you devote enough time to recruiting and retaining your own staff?

• Do you know your cost of replacing staff? Lost revenue, fees, training etc

• How are your staff motivated and incentivised? Is it in line with the company strategy & objectives?

• How do you know your staff are happy? When did you last check?

• NXD’s? Set the bar high

Hire good people & keep them

• Create a culture of fact-based decision making

• Use your data to create a model which isn’t dependent on you

• Use data to gain a competitive edge (examples coming up…)

• Model your star performers (the outlier myth)

• Create the Playbook

Understand & measure what really drives

your business

The #1 Vanity Metric Harming Your Business Example 1

Amount left on the table:

£546,000

F***!

The #1 Vanity Metric Harming Your Business Example 2

Amount left on the table:

£651,000

The #1 Vanity Metric Harming Your Business Example 3

Amount left on the table:

£1,075,000

• What type of business do you have? (Contract v. Perm, International etc.)

• Are you in control of cash? For existing AND growing?

• Are you keeping your best staff?

• Business Development strategy?

• Tax & compliance?

Have a model that delivers consistent

recurring profit

Don’t forget your due diligence

bundle

Scalable & Replicable

Be clear on what you are & what you aren’t

Have a model that delivers consistent

recurring profit

Hire good people & keep them

Understand & measure what really drives

your business

QUESTIONS?